Nov. 1, 2013

Written by

The Tennessean

Nashville City Center was sold to Alliance Partners HSP for $103 million.

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A Philadephia-area real estate investor and operator now owns the Nashville City Center after closing on the $103 million purchase of the 27-story downtown office building and the adjacent parking garage under construction.

The transaction is the first in Nashville for Alliance Partners HSP LLC, an affiliate of Honolulu-based The Shidler Group. It’s the second $100 million-plus purchase of a downtown Nashville office building in as many months after Raleigh, N.C.-based Highwoods Properties paid $152 million for The Pinnacle at Symphony Place.

“We love what’s going on in the city, and we think its prospects are bright,” said Richard Previdi, Alliance’s operating managing member. He said the completion of the parking garage should help enhance the site’s long-term prospects.

The 482,407-square-foot City Center at 511 Union St. is roughly 90 percent leased, with Waller law firm, design consulting firm Gresham Smith and Partners, First Tennessee Bank and several other law firms among the largest tenants. The parking garage will have 500 spaces.

Douglass Johnson, senior vice president of capital markets at CBRE, called the City Center’s sale further testament to investor interest in downtown. “A closely held group investing over $100 million in one transaction in Nashville like this will only attract more real estate investors into our market,” he said.